Macroeconomics

The risk that a borrower, also known as a creditor, might not repay a loan.

A type of bond that entitles its holder to the income from a package of mortgages.

the # of dollars that a borrower pays and a lender receives in interest in a year expressed as a percentage of the # of dollars borrowed and lent.

The nominal interest rate adjusted to remove the effects of inflation on the buying power of money. It is approx. equal to the nominal interest rate minus the inflation rate.

The relationship between the quantity of loanable funds supplied and the real interest rate when all other influences on lending plans remain the same.

The interest rate that the BOC charges big banks on loans.

A private firm, chartered under the bank act of 1991 to receive deposits and make loans.

The ratio of currency to deposits.

The relationship between the quantity of real money demanded and the nominal interest rate when all other influences on the amount of money that people with to hold remain the same.

The ratio of reserves to deposits that banks plan to hold.

A measure of money that consists of currency held by individuals and businesses plus chequable deposits owned by individualsand businesses.

A measure of money that consists of M1 plus all other depositis-non-chequable deposits and fixed term deposits.

A method of settling debt.

The sum of BOC notes, coins, and depository institution deposits at the BOC.

The ratio of change in the quantity of money to the change in the monetary base.

A banks reserves consist of notes and coins in its vaults plus its deposit at the BOC.

The average # of times a dollar of money is used annually to buy the goods & services that make up GDP.

The practice of seeking profit by buying in one market and selling for a higher price in another market.

A countries record of international trading, borrowing, and lending.Canadian Interest Rate differential: The Canadian interest rate minus the foreign interest rate.

The Canadian govt.s holdings of foreign currency.

A record of foreign investment in a country minus it’s investment abroad.

An exchange rate that follows a path determined by a decision of the govt. or the central bank and is achieved in a similar way to a fixed exchange rate.

A country that during its entire history has invested more in the world than other countries have invested in it.

A record of receipts from exports of goods and services, net interest income paid aborad, and net transfers received fromabroad.

Determined by govt. or central bank, and is achieved by central bank intervention in the foreign exchange market to block the unregulated forces of demand and supply.

determined by supply & demand, no direct intervention.Govt.

An amount equal to net taxes minus govt. expenditure on goods and services.

A situation in which the rates of return on assets in different currencies are equal.

prices of two countries are equal @ exchange R.

Saving minus Investment.